The collapse of FTX sent a shockwave through the crypto industry. Uncertainties remain about the future of crypto, especially when victims of the FTX contagion continue to tumble like dominoes.
The turmoil pushed Bitcoin well below the $18,000 price level, leaving questions about the viability and solvency of major centralized exchanges like Binance. During this debacle, Binance CEO Changpeng (CZ) Zhao increased his media presence, and some market participants even started to consider him the ‘savior of crypto.’
But does crypto really need a savior, even in these times of turmoil?
FTX Contagion Impacts
The FTX contagion put giants like the Digital Currency Group (DCG) in trouble. The DCG-owned lending arm, Genesis, is trying to keep bankruptcy at bay. At the same time, another exchange, BlockFi, filed for bankruptcy , and other exchanges halted withdrawals.
There have also been industry-wide layoffs so that companies could survive the bear market.
FTX was a rising competitor to challenge the dominance of Binance. But, with the collapse of FTX, Binance is one of the few big players in the industry.
Binance has recorded a 77% market share of all the centralized exchange (CEX) volumes.
Changpeng Zhao, the Savior?
Zhao announced a $1 billion industry recovery fund to avoid the cascading effects of FTX and help strong projects that are in a liquidity crunch.
While some criticized Changpeng Zhao for being “self-serving and monopolizing the market for his own benefit,” others refer to him as a savior .
In a Twitter thread pointing out some ‘wrongful narratives,’ CZ mentioned that crypto does not need saving while adding, ‘that’s the beauty of decentralization.’
1 “CZ wants to be the savior of crypto.” Crypto doesn’t need saving. Crypto is fine. It’s the beauty of decentralization. We are just part of it. We want to help other good projects that may be in a cash crunch because of recent events. It’s in our collective best interest. — CZ